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Best Buy OK's $5B buyback, raises dividend 7%

Best Buy's stock is up about 3 percent today after the consumer electronics retailer announced plans to boost dividend payments and buy back stock.

The company's board is raising the firm's quarterly dividend by 7 percent to 16 cents a share, and approved a plan to buy back $5 billion of stock. Best Buy's announcement came ahead of its shareholders' meeting Tuesday in Richfield.

Last week, Best Buy reported first-quarter results that topped Wall Street's expectations. But Best Buy's earnings have declined for the past three quarters, as the company faced intense competition and consumers' outlook on the economy darkened.